Consumption plays a vital role in economic activities. In most developed countries, personal or household consumption takes up about 60% in GDPï¼ˆOECD,2008ï¼‰, of which retailing industry is often proven to be the most important industry. Recently, due to the economic growth, employment improvement, and favorable tax policies, retailing industry has the chance to develop in a more comfortable environment. According to statistics from Planet Retail, a Consultancy Organization for Retail Industry, in recent years, world retail industry has made a considerably fast development with a sales increase of 8.4% and 6.7% in 2005 and 2006 respectively(Network,2006ï¼‰. Although the environment is good for retail industry, the intensity of competitiveness is also stronger ever than before. Many super large retailing corporations, such as Wal-Mart, Carrefour are competing for expanding and dominating both domestic and overseas market by implementing every strategy. Aldi, as a "hard-discount" retailer is very small and simple compared to those Wal-Mart or Carrefour regarding its sell items, store occupancy etc. However, Aldi has survived in this competitive retailing market and become one of the reputable retailers which could contend with other large retailing corporations. Therefore, based on Aldi in Australia, this article will analyze the Aldi's business strategy and its management which contribute to its great success. Also the article will give an analysis of Aldi's capability of competitiveness in terms of its internal and external environment.